Democrats Leader Senator Meg Lees says the National Party’s Member
for the north Queensland seat of Dawson, De-Anne Kelly has effectively
aligned herself with the Democrats position on petrol deregulation.

“I get a little worried when members of the National
Party agree with me but I can understand why De-Anne Kelly is doing
this,” Senator Lees says, “because the Democrats position on petrol
deregulation is the most sensible platform on the issue at the moment.”

“The similarities between the Member for Dawson’s
comments in a letter to a Service Station Proprietor in her electorate
and the Democrats stated position of two months ago deserve to be highlighted.”

“Service Station Proprietors will be relieved to
hear that at least one Coalition backbencher has finally come to their
senses on this issue,” Senator Lees says, “but if they want to see
the Government’s madness brought under control, proprietors, their
employees and their customers must vote to give the Balance of Power
to the Democrats on Polling Day.”

“It’s the only way they can be sure that the Government’s
mis-handling of this issue can be sorted out.”

A copy of De-Anne Kelly’s letter, the Democrats Media Release and
a letter to the Editor on fuel price regulation follows, as well as
a letter from the Motor Trades Association.

Peter Costello's Petroleum Marketing Reforms and the
forced closure of 4000 small retail petrol businesses will not bring
about cheaper petrol. The reforms will only benefit the multinational
oil companies at the expense of rural consumers, according to the Australian
Democrats.

Democrats Leader, Senator Meg Lees, said the Government's
blinkered ideological vision made it quite incapable of recognising
that the real problem in the petroleum industry is the market power
of the oil companies.

"The main reason country petrol prices are so
much higher than city prices is that both the Coalition Government and
Labor governments allowed the multinational oil companies to buy up
the independent wholesalers who used to supply country outlets,"
she said.

"This simply allowed the oil companies to set their own prices.
They have been keeping country petrol pr ices artificially high
to subsidise their discount wars in the city.

"Any petrol industry reform which is to be of
real benefit to the bush must start by forcing the multinational oil
companies out of the wholesaling business.

"Instead, Peter Costello has proposed a plan
which entrenches multinational control of the wholesale industry.

"At the same time, Mr Costello's plan gives the
oil companies almost total control of the retail sector by putting 4000
small business and franchises out of business" said Senator Lees.

"I fail to see how closing down 4000 competitors
increases competition.

"This is deregulation lunacy and competition
policy gone mad.

“Once again, as a result of this Government's deregulation
policies, the winners will be big business and the losers will be small
business and the bush. It is no different to the deregulation of the
postal services announced last week," she said. "This package
shows that this Government just never learns."

"People in regional and remote Australia are
not going to fall for this clap trap. They know full well by now that
deregulation is Coalition code for 'country pays more and big business
wins out”.

"The Democrats will oppose the deregulation proposals
announced by the Government today.

"We call on the Government to take off the ideological
blinkers and fix the real problem with petrol prices -which is the market
power of the major oil companies," Senator Lees said.

1. Keep the Sites Act until prices actually come down
in the country. Doing this is the best way of stopping even more power
going to the oil majors [it was also an express Coalition election commitment
in 1996 to keep the two Retail Sites Acts in place].

2. Require the oil companies to divest themselves
of all interests in the wholesale level of the industry. An independent
wholesaling sector completely separate from the oil manufacturers is
crucial for competition developing in rural areas.

3. Finalise the Oil code and give it teeth. The Oil
code has failed to adequately protect petrol station franchise holders
and needs to be beefed up and backed with the resources of the ACCC
and the Trade Practices Act.

4. Require terminal gate pricing in actual fact. not
just as lip-service. In particular, allow this to be extended to franchise
holders who make up 90 per cent of the market.

5. Development funding for alternative fuels which
could eventually be cheaper than petrol. Only today, car manufacturer
Honda called for more investment in alternative fuel sources.

The main reason country petrol prices are so much
higher than city prices is that both the Coalition and Labor governments
have allowed the multinational oil companies to buy up independent wholesalers
who used to supply country outlets. This has allowed oil companies to
set their own prices resting in artificially high country petrol prices
to subsidise discount wars in the city.

The Federal Treasurer would have us, believe his Petroleum
Marketing Reforms, which give oil companies almost total: control of the retail sector
by putting 4000 small businesses and franchises out of business, will
bring cheaper
petrol to regional areas. This is absolutely not true.

Any petrol industry reform which is to be of real benefit to
the bush must start by forcing the multinational oil companies out of
the wholesaling business. Instead, Peter Costello's proposed plan entrenches
multinational control of the wholesale industry even more.

People in regional and remote Australia must, know
by now that 'deregulation' is Coalition code for 'country pays more and big business
wins out'.

This is deregulation lunacy and competition policy
gone mad.

The Democrats are stating their case. We will oppose
the deregulation proposals and call on the government to take off its
ideological blinkers and fix the real problem with petrol prices, that
is the overwhelming market power of major oil companies.

Yours faithfully

Andrew Murray

Australian Democrats Senator for Western Australia

Motor Trades Association of Australia

Senator Andrew Murray

Australian Democrats Senator for WA

By facsimile (08) 9481 1679

Dear Senator Murray

I write to you in relation to recent ‘letters to
the editor’, written by the lead Australian Democrats Senate Candidate
for Victoria, Mr Jim Downey, that have been printed most Victorian rural
and regional newspapers regarding petrol prices. I attach a copy of
this letter for your reference together with a response I have made
to Mr Downey.

We respectfully assume that Mr Downey is your acolyte
in this connection; his excellent understanding of the problems faced
by retailers in the industry and the Government’s misplaced hope that
deregulation will deliver price reductions is a credit to both you and
the Australian Democrats in your endeavours to represent the interests
of retail motor traders and small business more generally.

MTAA supports wholeheartedly the views expressed by
you and Mr Downey and the Australian Democrats and, on behalf of our
members, I would encourage the Democrats to continue to champion the
plight of service station operators across Australia. With the Government
intent on repeal of the petrol Acts and the multinational oil companies
intent on further increasing their already powerful market share, the
service stations of Australia welcome the support of the Australian
Democrats as they seek to preserve their livelihoods and the jobs of
the tens of thousands of Australians, they employ.